In Search of the Rational Bank Customer


When did you last use the ATM and how much did you take out? Are you sure? A new study says our recall regarding cash machines and other financial matters is more often wrong than right.

Every day new banking studies come out and look at customer expectations and behavior in the mew omnichannel banking world. Do customers like the branch or not? What features do they want in a mobile app and what features do they not use at all? This data is carefully studied by bankers and consultants and proclamations and predictions are issued as a result.
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Maybe The Voice Of The Customer Isn’t


Criticizing Voice of the Customer (VOC) programs is like speaking out against motherhood and apple pie. The last time I criticized VOC programs, someone left a comment chastising me for presuming that a bank could know what its customers wanted without asking them.

Well, excuse me!

But there are (at least) two problems with the “voice of the customer” that many marketers don’t take into consideration:
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Does Customer Satisfaction Really Matter?


While all businesses would likely consider customer satisfaction a ‘nice to have’, many question whether investments towards improving the customer experience will actually result in a positive impact on the bottom-line. Across multiple industries, analysis of consumer data collected by J.D. Power shows a clear relationship between high customer satisfaction and improved financial indicators.
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Bank Switching Increases As Consumers Look For Better Mobile Capabilities


After a period of relative stability, the primary bank switching rate jumped by more than 40 percent in late 2013, with 60 percent of smartphone/tablet users reporting mobile banking capabilities as being either “important” or “extremely important” in their decision to Switch.
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Millennials Find Banks Irrelevant


A three-year study from Scratch, an in-house unit of Viacom, found that a third of millennials believed they won’t need a bank in the future. These millennials, defined as those between ages 18 to 33, also ranked the top four banks in the “ten least loved brands” and would rather go to the dentist than to their bank.
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The Financial and Emotional Benefits of Fully Engaged Bank Customers


When free checking took over the banking industry, differentiating on customer service or the “customer experience” came into much greater focus. Products had become largely commoditized, and banks were anxious to grow their deposits, which generated significant fee revenue and capital for lending. Through superior customer service, the thinking went, banks could attract those deposits and grow their bottom line. And for many banks, this was a highly successful strategy.
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Maybe The Experience Doesn’t Matter (That Much)


EY (is it not called Ernst & Young anymore?) released its 2014 Global Consumer Banking Survey recently. For a better review of it than I’ll provide here, see the summary on The Financial Brand, or download the report directly.

The report goes to some lengths to establish the connection between the level of trust consumers have in their banks and their intentions to refer their banks, as well as to open new accounts.
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